The market declined on Wednesday with sellers dominating the market days after most indexes became overbought on Monday. Among those funds that ended the day higher is the ProShares UltraShort Dow 30 ETF, which gained more than 10%.
Emerging markets ETFs struggled the most on Tuesday, with some of these funds down more than 3% in late trading. Among those funds that ended the day higher is the ProShares Short QQQ, which closed higher by more than 2%.
With energy and utilities stocks among those driving the markets higher, U.S. stocks extended their gains in a late rally on Monday. Tuesday’s ETFs includes the India Fund, IFN, which was ahead by more than 10%.
Another day of aggressive selling has once again proved a boon for short and leveraged short ETFs, which are rallying after two days of increasingly oversold conditions. Among the funds doing well is the ProShares UltraShort Oil & Gas ETF, DUG, which soared more than 22% on Wednesday.
Short and leveraged short ETFs were gained the most as the Dow turned a 300-point morning run into 30 points lost as of late-day trading.
Widespread selling in stocks has dragged many exchange-traded funds lower, with emerging markets ETFs and index ETFs joining sectors-based funds on the retreat.
Banks and financial ETFs were higher while energy and industrial funds were lower on a day during which stocks were able to rally from intraday lows. The KBW Bank Index KBE is one of several financial ETFs in overbought territory.
Financial ETFs were followed the market down on Monday, though short and leveraged short ETFs moved sharply higher. The ProShares UltraShort Financials ETF, SKF, being one of them, was up over 20%.
Financial stocks received the lion share of Thursday’s rally boost. The ProShares Ultra Financials ETF, UYG, was up more than 4% on the day.
Financial and basic materials ETFs were both on the retreat late in trading on Tuesday, while emerging markets-related ETFs pulled back.